AWI — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($171.99)
DCF	$95.02	-44.8%
Graham Number	$57.86	-66.4%
Reverse DCF	—	implied g: 16.4%
DDM	$26.57	-84.5%
EV/EBITDA	$171.99	+0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $228.29M

Near-term growth (yrs 1–5)(%)Rev: 5.6% / EPS: 6.8%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 11.26%

Computed WACC: 11.26%

Cost of equity (Re)11.63%(Rf 4.30% + β 1.33 × ERP 5.50%)

Cost of debt (Rd)7.34%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)93.73%

Debt weight (D/V)6.27%

Results

Intrinsic Value / share$67.41

Current Price$171.99

Upside / Downside-60.8%

Net Debt (used)$383.80M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-1.2%	2.8%	6.8%	10.8%	14.8%
7.0%	$96.98	$118.16	$142.74	$171.14	$203.78
8.0%	$77.81	$94.81	$114.53	$137.27	$163.38
9.0%	$64.54	$78.67	$95.02	$113.87	$135.48
10.0%	$54.81	$66.83	$80.74	$96.74	$115.08
11.0%	$47.37	$57.80	$69.84	$83.67	$99.51

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $7.09

Book Value / share($)Yahoo: $20.99

Results

Graham Number$57.86

Current Price$171.99

Margin of Safety-66.4%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 11.26%

Terminal growth rate(%)

Computed WACC: 11.26%

Cost of equity (Re)11.63%(Rf 4.30% + β 1.33 × ERP 5.50%)

Cost of debt (Rd)7.34%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)93.73%

Debt weight (D/V)6.27%

Results

Current Price$171.99

Implied Near-term FCF Growth22.6%

Historical Revenue Growth5.6%

Historical Earnings Growth6.8%

Base FCF (TTM)$228.29M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.29

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$26.57

Current Price$171.99

Upside / Downside-84.5%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $440.90M

Target EV/EBITDA multipleCurrent: 17.6×

Net Debt($B)Default: $383.80M

Results

Implied Equity Value / share$171.99

Current Price$171.99

Upside / Downside+0.0%

Implied EV$7.75B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$1.62B	-$616.20M	$383.80M	$1.38B	$2.38B
13.6x	$177.51	$154.17	$130.82	$107.48	$84.13
15.6x	$198.10	$174.75	$151.41	$128.06	$104.72
17.6x	$218.69	$195.34	$171.99	$148.65	$125.30
19.6x	$239.27	$215.93	$192.58	$169.24	$145.89
21.6x	$259.86	$236.51	$213.17	$189.82	$166.48

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